Market Update For December 16, 2025
The Nigerian equities market closed Tuesday on a marginally positive note, sustaining its extended consolidation phase as investors maintained a cautious stance amid mixed macro and sectoral signals. While broad-based buying remained limited, selective accumulation in fundamentally strong and technically attractive stocks provided enough support to keep the market in positive territory. This pattern reflects a maturing rally, where investors are increasingly discriminating, rotating capital toward stocks with clearer earnings visibility and improving balance-sheet dynamics.
Investor behaviour during the session highlighted ongoing portfolio realignment rather than aggressive risk-taking. Participants appeared to balance near-term profit-taking with strategic positioning, particularly in stocks that have either corrected meaningfully or are breaking out of long consolidation ranges. This approach has helped the market absorb selling pressure without a significant pullback, reinforcing the view that current weakness is corrective rather than structural.
A notable feature of the session was the continuation of strong momentum in select mid-cap and large-cap stocks. GUINNESS, MECURE and ALEX sustained their upward trajectory, trading above key resistance levels and registering fresh 52-week highs. Such price action, when accompanied by rising volume, typically suggests institutional accumulation and growing confidence in earnings outlook. FIDSON’s sharp advance after weeks of flat movement further supports this narrative, as it signals a possible shift from distribution to accumulation.
Sectoral performance remained fragmented, reflecting divergent earnings expectations and sensitivity to macroeconomic variables. The consumer goods sector benefited from renewed interest in select beverage and pharmaceutical names, driven by improving pricing power and expectations of stabilising input costs. The insurance sector also attracted demand, as investors continued to position ahead of anticipated earnings improvements and sector reforms. In contrast, the banking sector experienced mild sell pressure, largely due to profit-taking after recent gains and lingering concerns around funding costs and margin sustainability. The industrial goods and oil & gas sectors closed lower, weighed down by softer construction demand and declining global crude prices respectively.
Trading activity improved significantly, pointing to increased market participation and a return of liquidity to the market. Volume and value expansion were driven largely by activity in a few highly liquid names, suggesting targeted institutional trades rather than broad retail participation. ACCESSCORP dominated the activity landscape, accounting for a substantial portion of total market turnover, reinforcing its status as a preferred vehicle for large-ticket trades. Additional volume support from CHAMPION and STERLINGNG, alongside strong value trades in FIRSTHOLDCO and MTNN, further lifted overall market activity. Off-market transactions recorded in MTNN and CHAMPION added to the volume surge, indicating strategic block positioning by sophisticated investors.
From a technical perspective, the NGX All-Share Index remains locked in a tight consolidation band following its strong rally earlier in the year. The index continues to trade above its short-term and medium-term moving averages, preserving the broader bullish structure. The sideways movement observed over the past few weeks suggests the market is digesting earlier gains, building a base for its next directional move. Momentum indicators are largely neutral, but the presence of higher lows and improving volume on up days points to underlying strength. A sustained break above the 150,000-point psychological resistance could trigger renewed upside momentum, while the 149,000-point zone continues to serve as a key technical support.
External factors also shaped investor sentiment during the session. Global crude oil prices weakened further, with Brent slipping below the $60 per barrel mark amid growing optimism around a potential Russia–Ukraine peace deal. Expectations of additional Russian supply returning to the market have heightened concerns about oversupply heading into 2026. While softer oil prices may exert pressure on energy stocks and government revenue expectations, they could also help ease imported inflation pressures over time, a factor that equity investors are beginning to weigh into their medium-term outlook.
Looking ahead, we expect the market to remain range-bound in the near term, characterised by stock-specific movements and sector rotation. Investors are likely to continue favouring companies with strong fundamentals, attractive valuations and positive technical setups. A clear directional move will depend on the emergence of fresh catalysts, including corporate earnings updates, macroeconomic policy signals and developments in global commodity markets. Until then, disciplined accumulation on pullbacks and selective profit-taking remain the dominant strategies.
Market Snapshot: The NGX All-Share Index (ASI) edged higher by 0.01%, adding 21.23 points to close at 149,459.11 points, while market capitalisation increased by ₦13.53bn to ₦95.28trn. Market breadth closed slightly positive with 31 gainers against 26 losers. Top gainers for the session included ALEX (+10.0%), GUINNESS (+9.98%), MECURE (+9.95%), CUSTODIAN (+7.84%) and FIDSON (+7.50%), while HMCALL led the decliners. Total traded volume stood at approximately 1.03bn shares, valued at about ₦21.83bn, underscoring improved market participation.
